Net profit fell due to the absence of a $160.9 million gain from the sale of The Nassim a year ago.
CapitaLand’s net profit for the first quarter of 2018 fell 18.8 percent to $319.1 million, primarily due to the absence of a $160.9 million gain from the sale of The Nassim in Q1 2017.
Excluding the gain from The Nassim sale, operating net profit for Q1 2018 jumped 25 percent to $228.7 million on the back of “higher development profits in Singapore, as well as higher rental income from newly acquired or opened malls and offices in China, Japan and Germany”, it said.
Revenue rose 53.3 percent to $1.375 billion due to higher contributions from development projects in China and Singapore, rental revenue from newly opened and acquired properties, as well as the consolidation of revenue from CapitaLand Retail China Trust (CRCT), RCS Trust (RCST) and CapitaLand Mall Trust (CMT).
CapitaLand president and group CEO Lim Ming Yan revealed that the company is on track to achieve its $3 billion annual capital recycling target while exploring investment opportunities across asset classes.
“In 1Q 2018, we continued to optimise our portfolio by divesting 20 retail assets in China. This was followed by the proposed acquisition of Pearl Bank Apartments in Singapore and a site for our first integrated development in Vietnam,” he said.
“We also successfully set up our second commercial fund in the country, the US$130 million CapitaLand Vietnam Commercial Value-Added Fund, as part of growing our fee-based business.”
Looking ahead, CapitaLand expects market sentiments for Singapore residential property to “improve further this year, underpinned by overall positive economic performance and increased transaction volumes”.
In fact, it expects home prices to continue rising following a 3.9 percent quarter-on-quarter increase in Q1 2018. “We expect overall sales of new homes to improve with developers launching more projects in 2018.”
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